29/11/2013 - 10:52

Developers face land supply pressure: UDIA

29/11/2013 - 10:52

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Higher demand for new housing is placing further pressure on the state's land supply, as a new report finds land sales are tracking at more than 40 per cent above the 10-year average.

Higher demand for new housing is placing further pressure on the state's land supply, as a new report finds land sales are tracking at more than 40 per cent above the 10-year average.

A survey of more than 30 major land developers by the Urban Development Institute of Australia (WA) found lot sales were 30.5 per cent higher during the September quarter than in the same period last year.

Developers brought 55 per cent more lots to the market over the same period but new stages were selling quickly, according to UDIA WA chief executive Debra Goostrey.

The number of blocks on the market fell by 9.7 per cent in the three months to September 30 and by 39 per cent over the past 12 months.

"The industry is doing its best to keep up the supply of lots and it is absolutely critical that the government does not introduce any further restrictions on the supply of land to the market if we are to avoid the price hikes that occurred last decade," Ms Goostrey said.

The volume of lot sales in the September quarter represents a 43 per cent increase on Perth's 10-year average.

Ms Goostrey said the addition of new projects and a lift in expected land development at existing projects would help ease supply concerns.

She expects to see the stronger land sales translate into above-average housing construction levels in WA throughout 2014.

Baldivis recorded more than twice as many vacant land sales in 2013 as any other suburb with 636 settled land sales at a median price of $400 per square metre.

Harrisdale and Byford each recorded strong sales, while the City of Wanneroo remained the most active region for land development.

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